Russia's nuclear-powered cargo ship Sevmorput is heading back to St Petersberg. AFP/Rosatom
Russia's nuclear-powered cargo ship Sevmorput is heading back to St Petersberg. AFP/Rosatom
Russia's nuclear-powered cargo ship Sevmorput is heading back to St Petersberg. AFP/Rosatom
Russia's nuclear-powered cargo ship Sevmorput is heading back to St Petersberg. AFP/Rosatom

Russian nuclear-powered ship stranded off Canaries as ill captain is airlifted


Simon Rushton
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A Russian nuclear-powered cargo ship is limping through the Canary Islands' waters after its propeller was damaged and its captain was airlifted with suspected meningitis.
The Sevmorput, once destined for the scrap heap, has had to turn around and abandon its attempted trip to Antarctica, Russian state nuclear agency Rosatom said.
The mechanical failure, meaning the ship is sailing at just 10 knots, and the captain's sickness are unconnected but add to the ship's woes on a troubled voyage.

Environmentalists are concerned it will not be able to make it to its home port as winter storms threaten the journey from northern Africa to St Petersburg, Russia.

The ship, with a broken propeller, had been slowly sailing through the Canary Islands off North Africa when the captain fell ill.

FleetMon, a site that tracks the world's vessels for shipping companies, said the ship's captain was lifted off the ship by a Spanish maritime rescue helicopter and taken to a hospital in Las Palmas, Gran Canaria, for treatment.
Spain's merchant navy command contacted the vessel to confirm its seaworthiness. The ship responded, saying its machinery and mechanical equipment "work properly", and that there "has not been any incident or breakdown of nuclear equipment on board." It also said the crew were waiting for weather to improve "in transit areas".
French environmental group Robin Hood expressed concern about Sevmorput's route, noting that it would pass 14 European countries on its way to St Petersburg.

There was "no co-ordinated plan between EU countries to prevent the floating nuclear power plant from drifting," or for arranging another port for the vessel to dock, Robin Hood added.
The Sevmorput, Russia's only active nuclear-powered cargo ship, is 260 metres long and 32 metres wide, with a usual top speed of 19.5 knots.
In 2012, the ship was going to be scrapped but it was refitted and returned to service in 2016.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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